The Inventory Management Optimization Of Y Company Based On The Core Factor

With the increasingly keen competition, people from all walks of life are beginning to pay attention to cost control, and they also recognize the importance of inventory control. Although, in our country there have been a lot of academic studies on inventory management at present, the practical application is still lag behind. The inventory will appear between every course of the industry, so that it can connect them. The inventory management is necessary. Because though the inventory plays a connecting and lubricating role in the run of the industry, it must occupy a sum of money at the same time. If the inventory management is bad, that will lead to either inventory surplus or inventory shortage. In the case of inventory surplus, the bad management will lead to the increase of cost of storage and management. Besides the industry will also have to undertake the opportunity cost that caused by the money occupied by those surplus products. The inventory shortage will lead to the lost of revenue that products may bring firstly. What's worse, the industry may lose its customer. In a word, it is necessary to manage their inventory for all the companies.This paper mainly studies on a company's inventory. The company is a electronic product manufacturer. Its high-technology products range from telecommunication, network complication, digital household appliances and application software. Its inventory has the portrait that electronic products may bring. It also has the feature that it has too many products and those products are so different from each other. This paper mainly analyzes the inventory of this company's manufactured goods when it acts as a supplier.Firstly, this paper starts with the company's goods classification. The universal method for many companies is the traditional Activity Based Classification. This method can be widespread used because that it is very easy to carry out and it bolts the bran. But the traditional Activity Based Classification has some disadvantages. Those disadvantages include that its standard is single and the classification is too general which lead to some important products can't be emphasized. Finally it cannot gain the goal of the inventory management. To avoid these problems, this paper analyzes some factors that may affect the inventory firstly. Then three experts give their scores to those factors. Trough AHP processing this paper figures out each factor's weight. The higher weight the more important the factor is. So it gets three factors out of all factors and classification is based on this three factors. The classification still divides the products of the company into ABC. Then divide the category A and category B into smaller classes based on their shortage penalty costs and the capital they used. After that, this paper introduces some tactics and methods of inventory management. Through analyzing what role this company plays in the whole supply chain, find VMI as its inventory management method when it in the environment. At last, this paper analyzes those sub-classes and gives them tactics and methods of their inventory management.